Transferring out of SIPP and unsure of PTFC calculation

Rodders2409

Hello All,

I'm currently transferring out of an Aegon policy into Fidelity and need to some info on what this means please...

Email came through requesting me to confirm I'm OK with 'possible' impact on PTFC.

They say that the PTFC calculation for my Enhanced Tax Free entitelment is as follows...

Scheme Pret Prot LS - £12K
Scheme PretProt A-Day- £33K
Current Fund Value - £335K
Total TFC entitlement - £99K

The Lifetime Allowance applicable to this calculation is £0.00 and the calculation has been performed effective today.

Please note that all uncrystallised benefits held under the scheme must fully come into payment at the same time in order to retain the entitlement to protection. That is to say, if we do not receive full BCEs for all uncrystallised wrappers to process at the same time then the member would only have a standard 25% entitlement across all contracts.

I'm not Crystalising any funds and the full value was bring transferred as Cash into Fidelity.
Am I about to give up something valuable with Aegon...can someone give me an idiots guide please 

Many thanks

Linton

If you transfer an old pension to a new one you will lose any special benefits.  It looks like in your case for historical reasons you are entitled to take £99K tax free from your old pension provided you take the whole pension in one transaction - eg buy an annuity. After transferring you will only be entitled to take 25% of £335K=£83.75K.

If you want to go for drawdown anyway you may not care.

Albermarle

As above, and Fidelity will want you to agree you understand what you are giving up, so there is no possible comeback to them at a later date.

dunstonh

Protected tax free cash is not a safeguarded benefit (strangely).  So, you are free to move it.  But you will revert to 25% in the process.

Rodders2409

Thanks All,

Perfect feedback...
I'm not intending to take any for a good while yet and it'll be slow monthly drawdown in any event, so Ill go ahead and transfer...cheers.